Lloyd’s shortlists sites for EU subsidiary

Lloyd’s expects to reveal its preferred location for a new European Union subsidiary office by the end of next month, as it moves to protect the business from the negative impacts of Brexit.

“The subsidiary model is our preferred alternative trading option and our Brexit team is now reviewing which country within the EU would make the best location for a Lloyd’s subsidiary,” CEO Inga Beale told a London Forum breakfast meeting.

Lloyd’s has formed a shortlist and is talking to relevant governments, she says.

UK Prime Minister Theresa May confirmed last month that Britain will pull out of the single market when it leaves the EU.

“From a Lloyd’s point of view, while creating a lot of work for us, it’s important that we maintain market access to Europe for the long term,” Ms Beale said.

“One of the key attractions of Lloyd’s is its vast licence network around the world. It’s imperative that we don’t lose 27 licences overnight.”

The move’s timing will depend on negotiations over coming months.

Ms Beale also told the forum the industry risks moving too slowly in adapting to technological change, and stressed the importance of adopting the London market’s target operating model, which aims to modernise systems.

“Change is happening so fast that if we don’t embrace new technology, we will find ourselves trapped with legacy systems that are too slow and cumbersome to compete.

“The fourth industrial revolution is happening out there in the big wide world, and yet we still find pockets of resistance holding our market back.”

Ms Beale says the sector is ripe for disruption, like the music industry was in the 1990s, and billions of dollars is being invested in insurtech start-ups.